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City sends tax for baseball stadium to county

Published: Tuesday, November 5, 2013 at 8:49 p.m.

Last Modified: Tuesday, November 5, 2013 at 8:49 p.m.

The Ocala City Council on Tuesday sent a request to the Marion County Commission to put a five-year half-cent sales tax to build a baseball stadium for the New York Yankees' Class A minor league team on the ballot no later than March 31 for voter approval.

The City Council unanimously agreed to send all the documents to the county requesting not only the sales tax referendum, but that the county would agree to own the stadium premises by Dec. 31, 2013, and that it would fund half the cost of the referendum not to exceed $175,000.

The documents also request that the county agree to include Southwest 49th Avenue as part of the stadium project managed by the city.

In addition, the council is asking if Marion County would agree to dedicate up to $60 million in local option sales tax revenue to the 4,500- to 5,000-seat stadium project.

The sales tax is estimated to generate $82.88 million over five years.

In addition to the $60 million for the stadium, the city is asking the county to give the five municipalities $1.6 million of the sales tax revenue and approve the formation of a citizen committee to oversee the remaining $21.2 million to make sure it would be spent on projects that increase tourism and job creation.

To keep the project moving forward, the City Council, by a unanimous vote, executed the license agreement with FSL Bomber Baseball LLC regarding the Tampa Yankees coming to Ocala and the purchase and sales agreement with Ocala Trophy Ltd. to buy the land for project.

However, the council did not execute the interlocal agreement, the lease or the quit claim deed with the county, under which the county would own the stadium premises, which would be located west of Interstate 75 behind Kohl's department store off State Road 200.

Instead, it opted to send the documents and wait to hear what input the county may have regarding those three agreements.

The cost to build the stadium, buy the land, and build an access road and build Southwest 49th Avenue to Southwest 66th Street is estimated at $52.74 million, which does not include such costs as surveying, closing costs, design package and bond interest.

Landis Curry spoke in opposition to the project.

"I am a baseball fan. I am also a taxpayer in the city and the county. I am not hearing support in the community for a sales tax issue to carry this proposal," Curry told the City Council.

He said there are a few reasons for that, one being the negative impact it would have on lower-income families.

He said he thought the city should first spend $350,000 on a survey to find out the likelihood of the measure receiving voter approval. He also said that other communities use a tourist development tax to pay for such projects.

"There's a significant amount of concern in the community that there are a lot of other community needs that need to be addressed," Curry said.

Doug Shearer said he echoed Curry's worries.

He said he does not believe there is a chance of passing the sales tax.

Shearer also said he does not understand the timeline and how the city is buying the property before it hears from the voters. He said the city has been working on this project for two years and wondered why there is a rush on it now.

"We are spending a lot of money without citizens telling you this is what they want," Shearer said.

About 39 acres of land, for which the city will pay $50,000 an acre, will be used for the stadium and a commercial parcel.

Trophy has agreed to sell the city about 13 additional acres at $23,500 an acre to construct an access road from the intersection of Southwest 48th Avenue and Tartan Road to Southwest 49th Avenue and the stadium entrance.

In addition, Trophy will give the city an option to buy about 15 acres of additional land, if needed for the project, for which the city will pay $50,000 an acre.

At the end of Tuesday's meeting, Councilman Daniel Owen said he hoped the staff would continue to push projects forward. He said the people saying "no" will be the first ones at the ballpark buying the Cracker Jacks and hot dogs with their grandchildren.

"Just keep pressing," Owen said.

And Council President Mary Rich expressed her hope that the county would approve putting the tax on the ballot.

"It would be great for the county and the city," Rich said about having the Yankee farm team in Ocala. "I think people will attend. People will get jobs. I just think it's a great venue."

This project would bring the Yankee minor league team from Tampa to Ocala. It would not bring spring training to Ocala.

The city hired a team of consultants to prepare a feasibility study for the project and reviewed a number of agreements that other government entities have with minor league teams.

According to the consultants, the average number of minor league games are 65 per season and the average attendance per game for the Florida State League is 1,667. The average annual attendance per team for the Florida State League is 108,080. The average ticket price is $7-$9.

Under its agreement with the Yankees, the city would receive 75 cents per ticket sold and could possibly charge up to a $2 ticket surcharge. The Yankees must remain a tenant for 25 years with three 10-year renewal options.

The Yankees would be responsible for operation, management and maintenance. The Yankees can lease up to 10 acres from the city for commercial development. The city estimates its return on investment for the 10 acres is about 5.8 years.

Regarding the stadium, the proposed plan provides two levels of seating with one wrap-around concourse. The dugout, support space and field-level seats are below the concourse and the suite level. The upper level includes 12 luxury suites.

There also will be picnic-type seating on an outfield berm. The stadium club, outside bar and terrace seating and party deck seating are also planned, as is an outfield restaurant, with additional indoor and outdoor seating, along the first-base line.

The maximum stadium capacity would be 4,000 people, not including the roughly 1,500 patrons seated on the berm. The 4,000 includes 567 box seats, 567 reserved seats, 1,134 general admission seats, 1,000 canopy-covered seats, 132 suite balcony seats, with suite level party decks, and 600 terraced picnic area seats.

Contact Susan Latham Carr at 867-4156 or susan.carr@starbanner.com.

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